Hess 2011 Annual Report Download - page 93

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HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
determined by the Corporation’s investment committee and include domestic and foreign equities, fixed income,
and other investments, including hedge funds, real estate and private equity. Investment managers are prohibited
from investing in securities issued by the Corporation unless indirectly held as part of an index strategy. The
majority of plan assets are highly liquid, providing ample liquidity for benefit payment requirements. The current
target allocations for plan assets are 50% equity securities, 25% fixed income securities (including cash and
short-term investment funds) and 25% to all other types of investments. Asset allocations are rebalanced on a
periodic basis throughout the year to bring assets to within an acceptable range of target levels.
The following tables provide the fair value of the financial assets of the funded pension plans as of
December 31, 2011 and 2010 in accordance with the fair value measurement hierarchy described in Note 1,
Summary of Significant Accounting Policies:
Level 1 Level 2 Level 3 Total
(Millions of dollars)
December 31, 2011
Cash and short-term investment funds .................... $2 $28 $—$30
Equities:
U.S. equities (domestic) ............................. 452 — — 452
International equities (non-U.S.) ....................... 50 118 — 168
Global equities (domestic and non-U.S.) ................ 11 149 — 160
Fixed income:
Treasury and government issued (a) .................... — 149 1 150
Government related (b) .............................. —12 2 14
Mortgage-backed securities (c) ........................ —87 — 87
Corporate ......................................... —96 1 97
Other:
Hedge funds ....................................... — — 211 211
Private equity funds ................................. — — 58 58
Real estate funds ................................... 7 — 44 51
Diversified commodities funds ........................ —15 — 15
$ 522 $654 $317 $1,493
December 31, 2010
Cash and short-term investment funds .................... $ 5 $ 31 $ — $ 36
Equities:
U.S. equities (domestic) ............................. 444 — — 444
International equities (non-U.S.) ....................... 53 121 — 174
Global equities (domestic and non-U.S.) ................ 18 140 — 158
Fixed income:
Treasury and government issued (a) .................... — 98 3 101
Government related (b) .............................. — 14 3 17
Mortgage-backed securities (c) ........................ — 61 — 61
Corporate ......................................... — 93 1 94
Other:
Hedge funds ....................................... — — 187 187
Private equity funds ................................. — — 40 40
Real estate funds ................................... 7 — 32 39
Diversified commodities funds ........................ — 14 — 14
$ 527 $572 $266 $1,365
67